US Dollar rallies on Wednesday with US yields surging higher

October 23, 2024

LONDON (October 23) The US Dollar (USD) speeds up its rally this Wednesday just ahead of the US Opening Bell, fueled by uncertainty ahead of the US presidential election and safe-haven inflow after equities extend their downbeat performance. Meanwhile, US bonds are continuing to sell off, which means US rates are surging with the US 10-year benchmark having rallied from 4.07% on Monday to 4.23% on Wednesday. The King Dollar is back on the scene and might even accelerate further as uncertainty picks up ahead of the November 5 election. 

On the US economic front, a very light calendar is ahead for markets to digest on Wednesday. Besides the Existing Home Sales numbers, nothing really from an economic data view that could alter the current stance. Rather look at US earnings where heavyweights Tesla, IBM, Boeing and Coca cola are due to release earnings. 

Daily digest market movers: Mortgages the canary in the coal mine

  • At 11:00 GMT, the Mortgage Bankers Association (MBA) has released the weekly Mortgage Applications for the week ending October 18. A forth week on contraction with a -6.7% against the contraction of 17% the prior week. 
  • At 13:00 GMT, Federal Reserve Governor Michelle Bowman delivers opening remarks at the Eight Annual Fintech Conference Hosted by the Federal Reserve Bank of Philadelphia.
  • At 14:00 GMT, the Existing Home Sales for September are due, with expectations for a surge to 3.9 million units against 3.86 million units in August. 
  • At 16:00 GMT, Federal Reserve Bank of Richmond President Thomas Barkin speaks about community colleges at the 2024 Virginia Education and Workforce Conference.
  • China’s indices are the last man standing in a pool of red in the equity markets. US equity futures are struggling to pair losses ahead of the US Opening Bell. 
  • The CME Fedwatch Tool is backing a 25 basis point (bps) rate cut with an 88.9% probability against an 11.1% chance of no rate cut for the upcoming Fed meeting on November 7.  
  • The US 10-year benchmark rate trades at 4.23% and continues to rally for this week. 

FXStreet

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